National Republican., 1887-05-09

the dollar, is not high one, and on the
present valuation produces 81 l,200, 900 In
come. One third OF that set apart by con-
tract, in he bonds, would pay the interest
on f25, 100000 worth of bonds and retire
$750,000 in the first Eve years.
1t Is fair to assume from all the present
indications that by the expiration Of five
years the value OF property in Virginia
will have increased from so to 80 per cent,
and that $3.50, 100000 will be the assessed
value, the income for bonds and interest at
this rate will be 100000, which will pay
the interest, and retire another S750,0O0 Of
the bonds In the second five years.
The interest account for the next five
years would be $705,000 per annum on an
assessment Of s550,000,0O0 and 4 mill
tax would give $2200,000, onc.third OF
which would pay the interest and retire
only small sum of the principal of the
debt. But Virginia, prosperous as she then
Will be, can easily afford an additional tax
OF / mill during this term Of five years, and
through that reduce the principal OF the
bonds to $20, 1000, 900, and the interest charge
for the next fifteen years to $S00,000.
A 9 mill tax on 5000, 900, 900 will pay the
interest and extnguish the debt in the enext
fifteen years.
But Virginia can do better even than this,
and not distress her people, stop her schools
or her system of pensions II the amount Of
the debt Is fixed upon as S25,000,000 aud
bonds such as suggested are agreed upon
and Issued. 1t is stated that the offer OF
the state committee is to pay $150,000 a
year on S22 100000. OF course that is to
come from the taxes now collected, and
that sum cah be paid, or the committee
would not offer it.
Let the new thirty.year bonds have i'm
bodied in the contract that ST50,0OO shall
be set aside each year to pay the interest
and the principal. This sum used with
common prudence would pay the interest
and reduce the principal to $20,000,000 In
the first five years, so that In the second
term Of five years, at per cent, the inter
est charge would only be Si00, 900, leaving
$3.50, 600 each year with which to purchase
2 per cent. bonds, and at the discount such
bonds would inevitably be sold at, $3p0, ,0JO,.
600 more would be retired, leaving $17,000,
000 only to bear per cent.
In the third period. with interest at Q
per cent, and about 1000, 900 to pay on,
the interest charge would be $500,000, and
another million could be retired, leaving
Sl6,0O0,00 TO bear interest at 4 per cent /,
making an interest charge OF S6i0,000, and
a sinking fund OF over 800, 900 a year, and
M,s cithom raising the present rate Of tara
ton or aRo,Cing that the assessed valuatiOn
Of property tvW be increased.
II is, however, reasonable to believe that
in five years the valuation of Virginia will
be increased at least one.third-that is to
four hundred million dollars. Setting
aside the increase in the revenue from the
raised valuation would in the second period
Of five years enable the state to retire
s3,000,000 additional Of its bonds, leav.
ing the total debt at the beginning Of
the per cent. period only Sl4,000,0OO,
with an interest charge of $500, 900, and an
annual fund to pay it Of 81 100000.
Without any further increase in the
assessed value of property during this third
period Of five years, the state would have
S130,00O each year with which to purchase
its bonds, and that would reduce the prin.
cipal to S10,0O0,0o0 when the A per cent
period begun. And in ten years OF that,
with the bonds at premium and without
any addition to the fund, the debt would
be extinguished.
This is the best Virginia can do unless the
United States pays Virginia for the l6, ,000,-
600 acres Of land taken from her TO form
the state of West Virginia. II this claim
were paid, as In equity 1t should be, then
the Old Dominion could pay her original
Indebtedness, interest and principal.
JUSTICE.